5G consumer business: ready when you are

The first commercial 5G networks are already going live. One of the first application for 5G will be enhanced mobile broadband (eMBB) primarily addressing consumers with new services and experiences. We have looked at the business case. Our study reveals that the evolution to 5G can enables a 10 times lower cost per gigabyte than current 4G networks. Telecom operators now have a window of opportunity to considerably improve their consumer business with the support of 5G. For first movers, 5G unlocks the possibility of reshaping the market place, with increased market share, better customer experience and improved revenue streams.

Consumers are expecting more from 5G. Performance, ultra-high speed, and reliability are all part of broadening consumer expectations of the 5G experience. More than 70 percent of consumers identify performance aspects as their number one expectation to 5G according to our ConsumerLab studies. Consumers also expect new services like real-time translation, enhanced event experiences and immersive VR-gaming to be a reality within two years of the introduction of 5G. In essence, 5G is both about improving the mobile broadband service that consumers already today subscribe to and about adding completely new services and experiences over time.

Be first to market and first to revenue

First movers are likely to grow faster and more sustainably than the competition, as was proven many times during the introduction of 4G. Technology leadership often leads to both strategic market advantages and economic advantages. Proactive operators attract more customers, gain market share and maintain higher ARPU, by providing superior user experience and premium offerings.

To provide further insight about consumers expectations of 5G, and to understand what factors that will drive the success of 5G, Ericsson ConsumerLab has interviewed smartphone users across 50 countries. The insights are clear. Consumers don’t want ‘just another G’ – they want a new experiences. How should service providers address the consumer expectations with the upcoming 5G launches? We have matched the consumer insights with our business and network evolution advice into factors for 5G consumer success.

Two thirds of smartphone users expect 5G to be mainstream within three years. The success of 5G hinges on its adoption by the 5G Forerunners.

The 5G consumer business case

With 5G-enabled smartphones coming in 2019, it is fundamental to back that up with a network that delivers a 5G experience. Our network technology enables service providers to smoothly evolve from 4G to 5G, with both high cost-efficiency and short time to market.

Ericsson’s network technology enables an evolution to 5G through a natural, stepwise implementation – one that balances investment, new revenue streams and competitiveness. The result? Our economic study of enhanced mobile broadband shows that the evolution to 5G can enable 10 times lower cost per gigabyte compared to current 4G networks. By adding capacity on 4G, followed by the introduction of technologies such as Massive MIMO and 5G New Radio, cost per gigabyte will decrease gradually.

Enhanced mobile broadband will be the first commercial application of 5G and can help operators improve their consumer business. Our study reveals that the evolution to 5G can enable a 10 times lower cost per gigabyte, compared to current 4G networks.

Ericsson’s network technology enables an evolution from 4G to full 5G deployment through a natural, stepwise implementation that balances investments, revenue streams and competitiveness while minimizing risk. Our paper outlines how. Read the new edition with expanded sections on core network evolution and spectrum strategies.

The outcome of improving 4G networks now with 5G proof investments represents a turning point for overcoming the three biggest challenges of mobile operators: meeting the exponential data traffic growth, meeting consumer expectations on speed and quality and monetizing the consumer value delivered.

Service providers should leverage the window of opportunity and the capabilities that 5G provides, to improve their consumer business and gain competitive advantages. The time is now.